New trading rules for the A-share market are set to take effect on Monday, July 6th. A key change that has garnered significant market attention is the increase of the daily price fluctuation limit for mainboard ST stocks from 5% to 10%.
According to data, as of July 3rd, there are 211 ST-category stocks in the A-share market, excluding those in the delisting period or about to be delisted. Among these, 150 are mainboard ST stocks, comprising 77 *ST stocks and 73 ST stocks.
Understanding the Risks Associated with ST Stocks
Among these 150 stocks, several have recently announced that their trading may be subject to delisting risk warnings, while others face existing delisting risks. Furthermore, most ST companies are entangled with multiple risks, including operational and production hazards, unresolved issues of illegal guarantees, risks related to the pledge and freezing of major shareholders' shares, and risks of overdue payments and litigation.
Tian Lihui, Dean of the Institute of Financial Development at Nankai University, stated that raising the price limit for mainboard ST stocks to 10% is not a simple "loosening of restrictions." Instead, it represents a profound reform aimed at reshaping the market's value logic. From an ecological perspective, the "Matthew Effect" within the ST sector will become extremely pronounced: stocks with expectations for fundamental improvement will see their value recover more quickly, while low-quality stocks lacking support will face accelerated risk clearance and may even trigger face-value delistings faster. This marks a formal departure from the old model of "speculating on poor performers and shell companies" and a step into a new phase driven by survival of the fittest and fundamentals.
Key Details of the New Trading Rules
The revised trading rules were released by the Shanghai, Shenzhen, and Beijing Stock Exchanges on April 24th. After over two months of market and technical preparation, these new rules will officially come into force on July 6th.
A core adjustment in the new rules is the change of the daily price fluctuation limit for mainboard stocks under risk warnings from 5% to 10%, aligning them with other mainboard stocks. This aims to enhance pricing efficiency and reduce mechanistic differences within the board.
Data shows that as of July 2nd, there are 156 companies in the Shanghai and Shenzhen mainboards classified under the risk warning category. Six of these are in the delisting period or about to be delisted, leaving 150 stocks still under the ST status.
These 150 stocks are the primary focus of the new rule. From the beginning of the year to July 2nd, 117 of these stocks declined, accounting for 78% of the group, with 21 of them seeing their prices halved. *ST Dongzhu experienced the largest drop at 76.10%. Nine other stocks, including ST Longda (002726.SZ), ST Cuihua (002731.SZ), *ST Shida (600734.SH), and ST Hailong (000677.SZ), saw declines ranging between 60% and 70%.
It is noteworthy that ST Longda, ST Cuihua, and ST Hailong have recently announced that their stock trading may be subject to delisting risk warnings. Additionally, five other stocks with year-to-date declines between 20% and 53% also face potential delisting risk warnings: ST Jiaying (002198.SZ), ST Zhanggu (002598.SZ), ST Zhonglu (600818.SH), ST Xinghua (002109.SZ), and ST Wanbang (002082.SZ).
Among these eight companies, all except ST Cuihua face this risk because their 2025 internal control audit reports received adverse opinions. If their next annual financial report's internal control also receives an adverse or disclaimer of opinion, their stocks will be subject to delisting risk warnings. ST Cuihua faces the risk because it failed to disclose its 2025 annual report. Trading in its shares was suspended starting May 6th. Given the two-month deadline, if the company cannot disclose the 2025 report by July 6th, its stock trading will be subject to a delisting risk warning.
Other companies are already facing delisting risks. Stocks like *ST Lida (603828.SH), *ST Erya (600107.SH), *ST Huaxi (002630.SZ), and *ST Lingnan (002717.SZ) have recently announced the potential risk of being terminated from listing.
Furthermore, most ST companies grapple with multiple risks, including operational hazards, unresolved illegal guarantee issues, risks related to major shareholders' share pledges and freezes, and overdue payment and litigation risks. For instance, on the evening of July 2nd, *ST Ruimao (600180.SH) announced risks including multiple debt defaults and litigation, frozen shares of the controlling shareholder, risks related to out-of-court restructuring implementation, and delisting risks.
Some companies, however, are applying for the removal of the ST label. For example, on the evening of July 2nd, *ST Modern (002656.SZ) announced that its application to the Shenzhen Stock Exchange to revoke the delisting risk warning is still under review and supplementary material submission.
Accelerated Market Differentiation and Risk Clearance
What impact will the adjustment of the price limit for mainboard ST stocks have on the market, and what should investors be aware of?
Tian Lihui believes that from a market mechanism perspective, this change addresses the long-standing issues of liquidity drought and price distortion in ST stocks. It significantly improves pricing efficiency, allowing both positive and negative news to be more fully digested within a larger price range.
Will companies with prospects of removing the ST label or escaping risk warnings be subject to speculation? Or, in the context of the A-share market moving away from "speculating on poor performers and shell companies," will investors remain cautious towards ST stocks?
"This does not mean that companies有望摘帽 will迎来无脑炒作. On the contrary, market博弈 for such stocks will tend to be extremely cautious and differentiated," Tian stated. After the price limit doubles, the risks of chasing rallies and selling on dips are amplified simultaneously. The old logic of "low-risk连续涨停套利" has completely失效.
Simultaneously, against the backdrop of regulators cracking down on irrational speculation and the rigid enforcement of delisting mechanisms, capital is accelerating its shift towards certainty. In Tian's view, the market will strictly scrutinize the substance behind a company's "帽 removal": only those enterprises that achieve substantive turnaround through主业升级 or asset restructuring will gain value re-rating. Expectations of "pseudo帽 removal" relying solely on financial adjustments without genuine operational support will face significant downside risks and pressure for accelerated delisting.
Some industry insiders note that although the price limit for mainboard risk-warning stocks has been widened, their risk characteristics remain different from ordinary stocks. They still signify that the company faces operational or other major risks, and delisting risks persist.
So, what risks should investors pay attention to? "Investors must清醒认识到 that after the price limit is widened, the potential daily profit or loss幅度 for ST stocks directly doubles, and delisting risks still loom high," Tian said.
He具体分析 that the primary concern is the accelerated risk of "face-value delisting." The speed at which a stock price falls below the 1-yuan红线 will increase substantially. Once delisting is triggered, asset shrinkage can be severe. Secondly, investors should be wary of纯概念炒作 lacking fundamental support, as such stocks are极易遭遇连续跌停 when liquidity dries up.
"Ordinary investors should彻底摒弃投机思维,重新审视 their holdings, and果断规避 stocks with no实质重组进展. Investment should回归本源, adhering to rational principles, staying away from companies with hollow主业 and abnormal finances, and shifting attention to优质资产 with稳健 fundamentals or more liquid ETF tools," Tian advised.
The aforementioned industry insider also believes that investors should fully understand the stock risk warning system and trading regulations, pay attention to the fundamental conditions of stocks and relevant risk提示公告, and审慎参与 risk-warning stock trading based on their own financial situation and risk tolerance.
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